U.S. Organic Sales Continue to Grow, while Globally, Organic Acreage also Increases
Source: Organic Trade Association
U.S. organic food sales totaled nearly $14 billion in 2005, representing 2.5 percent of all retail sales of food, according to the Organic Trade Association's (OTA's) 2006 Manufacturer Survey. Organic foods' share of total food sales is up from 1.9 percent in 2003. According to survey results, sales of organic foods are expected to reach nearly $16 billion by the end of 2006.
Organic food categories experiencing the greatest growth during 2005 included meat (55.4 percent), condiments (24.2 percent), and dairy products (23.5 percent).
Meanwhile, non-food products, including personal care, flowers, pet food, fiber (linen and clothing), household cleaners, and nutritional supplements, grew by 32.5 percent overall to reach $744 million in sales during 2005.
The fastest-growing non-food categories during 2005 were organic flowers (50 percent), pet food (46 percent), and fiber (44 percent).
More than 31 million hectares of farmland are currently under organic management worldwide, a gain of about five million hectares in a single year, according to The World of Agriculture: Statistics & Emerging Trends 2006. Much of the increase occurred in China, where nearly three million hectares were recently certified as organically managed.
The global market for organic food and beverages was worth $27.8 billion in 2004, and was projected to have surpassed $30 billion in 2005, according to Amajit Sahota of Organic Monitor. The market is expanding by approximately 8 to 9 percent each year, with North America and Western Europe experiencing the most growth.
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